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Investments worth Rs 2,39,000 crore have been made in the SEZs generating employment to 10.20 lakh persons as on December 31, 2012, EPCES data stated. The government has granted formal approvals to 577 SEZs. So far 385 SEZs have been notified while 166 are in complete operation.
“SEZ operators have been expecting abolition of MAT (minimum alternate tax) or at least to reduce the rate to 7.5% in order to motivate the non-operational SEZs to operationalize their SEZs and by bring in the projected investment. It was disappointed to note that no such initiative is found in the Budget,” said PC Nambiar, chairman, EPCES.
However, Nambiar added that some relief for the SEZ developers and units might be announced with the passing of the Finance Bill. SEZs and EOUs (export-oriented units) constitute one-third of the country’s total merchandise exports.
Under Section 10AA of the Income Tax Act, SEZ units get 100% income tax exemption on export income or first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
The body is expecting some measures to be unveiled during the upcoming Foreign Trade Policy.
